Knowledge Check
1. The control process assumes that ________.
2. An example of control criteria that can be used in any situation is ________.
3. In reviewing the result of the control process, managers could choose to avoid taking action when ________.
4. Which of the following types of control prevents problems because it takes place prior to the actual activity?
5. Management by walking around is what type of control?
6. What type of control gives employees information on how well they performed, and therefore, can increase motivation?
7. The current ratio and acid test are two examples of what type of ratio?
8. Which of the following ratios measures an organization's ability to meet financial obligations (debt) and allow someone to understand the company's use of different methods of financing to pay interest?
9. If a firm wants to measure items related to sales and turnover, it should use what type of ratio?
10. Which of the following is a performance measurement tool that looks at four areas that can help a company succeed?
11. Suzy's Packing Supplies is an organization that prides itself on keeping its employees happy. In fact, most of Suzy's performance measures are based around the firm's workers. If Suzy chooses to measure the organization's performance using the balanced scorecard tool, which one of the four factors will she focus on the most?
12. Which of the following options listed would be an example of a measurement in the internal processes area of a balanced scorecard?
13. Which of the four areas of a balanced scorecard can help a firm best answer the question, "how do we look to shareholders?"
14. ________ is a method through which organizations compare themselves to other firms to improve their processes and products.
15. Firms can benchmark their performance against competitors, but they can also benchmark against themselves. This is known as _____.
16. Amy's Waffle Hut is not performing well in inventory turnover (products are sitting unused for too long, and some are spoiling). To correct this, Amy walks across the street to speak to Sue, owner of Sue's Cinnamon Rolls, to see how she handles her inventory. Amy is engaged in what process?
17. If a manager rationalizes that he does not have time to investigate the source of a problem and instead resorts to "putting out fires," the manager is missing the use of ________.